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What Credit Score Do You Need To Buy A House In 2022?

Kim Porter3-Minute Read
December 02, 2021

When you’re looking to get a mortgage, it helps to know what credit score is needed to buy a house. Your credit score impacts both your eligibility for the loan and the interest rate you get.

The minimum credit score to buy a house with a conventional loan is 620 – though you may qualify with a lower score if you’re seeking a loan insured by the Federal Housing Administration (FHA), such as an FHA loan, VA loan or USDA loan. Home buyers with a credit score of 760 and above are more likely to qualify for the best interest rates on a mortgage.

If your credit score needs work, there are ways to improve it before applying for a mortgage loan.

What Is A Good Credit Score To Buy A House?

During the application process, lenders commonly check the borrower’s FICO® credit score, which grades consumers on a scale of 300 – 850, with 850 being the highest score possible.

According to FICO® credit bureau data, the best credit score to buy a house is 760 and higher, which tends to unlock the best mortgage rate.

However, to qualify for a home loan, you’ll need at least the minimum credit score to buy a house, which ranges from about 500 – 680, depending on the mortgage program. But a higher credit score can boost your chances of qualifying for a mortgage because it shows the lender that you’re likely to repay your loan on time.

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Minimum Credit Score To Buy A House By Loan Type

The minimum credit score requirement varies depending on the type of mortgage you get and who insures the loan. Eligibility requirements are looser for mortgages backed by government agencies, including the Department of Veterans Affairs, Department of Agriculture and the Federal Housing Administration. The minimum credit score for conventional loans and jumbo loans is often higher because these aren’t insured by the government.

Here are the lowest credit scores to buy a home for several types of mortgage loans:

Mortgage Type

Minimum Credit Score

Conventional loan


Jumbo loan

700 – 740, depending on loan amount

FHA loan

Typically 580

VA loan


USDA loan


Other Factors That Mortgage Lenders Consider

Although credit scores are a major factor in deciding whether an individual will be approved for a loan or not, there are also many other factors that are considered. Those factors include:

  • Your down payment amount
  • Your income and employment history
  • Your debt-to-income ratio
  • Your last two years of tax returns
  • Your bank statements
  • The condition and value of the home you’re buying

How Does Credit Score Affect Your Interest Rate?

The interest rate you receive on a home loan is largely tied to your credit score. Generally, borrowers with higher scores qualify for lower mortgage rates, which can save them thousands of dollars over the life of a mortgage.  It’s a good idea to compare how varying credit scores influence your mortgage rate.

Every lender will have a different formula for setting your interest rate, but even a small difference on your credit score can help you save substantially. For example, bumping your score from 660 to 700 may help you shave $61 off your monthly payment on a $300,000 mortgage. That’s a difference of $21,960 over a 30-year mortgage term.

Can You Get A Mortgage With Bad Credit?

A bad credit score for a mortgage is below 620. While it’s possible to get a mortgage with bad credit, you’ll pay higher interest rates and have higher monthly payments.

If your credit is lower than the minimum required, you might still be able to get the loan if you add a co-signer to the mortgage, make a larger down payment or lower your debt-to-income ratio.

How To Improve Your Credit Score

If you’re considering applying for a mortgage, it’s a good idea to check your credit score to see if your score needs to be repaired or improved.

Start by requesting your credit reports and looking for errors, which could potentially drag down your credit. You can get a free credit report from TransUnion®, Equifax® and Experian™ every year. If you find inaccurate information, file a dispute with the creditor and the credit reporting agency. Getting rid of errors may help boost your score.

Next, get to know how credit scores work. Here’s a list of what influences your score and how to make improvements before applying for a mortgage:

  • Payment history: This factor makes up 35% of your credit score, so paying your bills on time can boost your credit. Set up monthly reminders or automatic payments if you need help remembering.
  • Credit utilization: This refers to the amount of your available credit you’re using. Try to pay down some of your loan balances and keep your credit card balance to 30% of your credit limit or less.
  • Length of credit history: A long credit history shows lenders you have experience managing debt. Aim to keep credit cards open, even if you rarely use them, to bolster this part of your credit score.
  • New credit: A lender might be wary if you apply for credit often because it could cause you to fall behind on your bills. Refrain from opening new credit accounts before buying a home.
  • Credit mix (10%): Having different types of credit accounts open – like credit cards, student loans and a car loan – can positively influence your credit scores. When you get a mortgage, it will likely help your credit score because it adds to your credit mix.

The Bottom Line

Financing a home purchase is a big legal commitment, which requires reassurances that you have and will continue to pay off debt. Devoting even 6 months to improving your credit rating can save you thousands in interest payments over the life of the loan.

Whether your credit score is up to par with minimum credit requirements or not, it’s just one factor in mortgage eligibility. Check your credit score and learn how to lower your debt-to-income ratio to financially prepare you for buying a home.

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Kim Porter

Kim Porter is an experienced personal finance writer who focuses on mortgages, credit cards, student loans, debt and more. She has a B.A. in journalism from the University of Florida. You can find her on Twitter at @kimsavesmoney or on LinkedIn.